LG Electronics targets 20% growth in turnover in MEA this year

LG Electronics plans to double global sales volumes, and profit and shareholder benefits by 2010. The company’s Blue Ocean strategy will focus on products offering the maximum growth potential, market share and profit generation.

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By  Tawanda Chihota Published  February 22, 2006

LG Electronics has recorded sales turnover of US$2.27 billion in the Middle East and Africa in 2005, an 8% increase compared to 2004. LG’s Digital Appliance sales were US$970 million, followed by Home Electronics (US$795 million), IT products (US$320 million) and GSM handsets (US$185 million). The company’s biggest selling regional markets last year were South Africa, accounting for US$400 million in sales turnover. The Lower Gulf notched up US$300 million in sales, and Iran reported sales of US$309 million. Sales in Turkey amounted to more than US$239 million, while in Jordan this reached US$165 million and Morocco, US$130 million. “2005 was a challenging year for LG Electronics,” said K. W Kim, president of LG Electronics, Middle East and Africa Operations. “But the brand continued its impressive growth trend and maintained its leadership position for consumer electronics. Continued product innovation aimed at the unique customer needs of local markets will drive further sales growth.” In the Digital Media Division, LG sold notebooks worth US$53 million last year; a 112% increase compared to 2004. GSM sales were up 15.6% compared to 2004. LG Electronics has earned increasing market share by introducing market-specific, niche products like the Qiblah phone, the world’s first mobile handset with Qiblah direction and Azan alarm functions. “Value creation for customers is a focal point of LG Electronics. For 2006, LG will target overall regional sales of US$2.7 billion, making for 20% growth compared to 2005,” said Kim. LG Electronics plans to double global sales volumes, and profit and shareholder benefits by 2010. The company’s Blue Ocean strategy will focus on products offering the maximum growth potential, market share and profit generation. Blue Ocean products will generate around 30% of sales and 50% of profits by 2010. LG Electronics’ marketing strategy for 2006 will place greater emphasis on young people and women in the region.

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